On the daily chart below for NZDUSD, we can see that after falling into the 0.6084 support, the price bounced strongly and it’s now eyeing the previous top of the range at 0.6276. The market at the moment is trading on the basis that the Fed has finished its tightening cycle, but as Fed Chair Powell said, it will depend on the evolution of the economy and inflation Inflation Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Read this Term going forward.

We keep seeing rangebound price actions across many major currency pairs as the market can’t decide where to go given that central banks may all be near the end of their tightening cycles and there’s also the risk of a recession on the horizon. It seems like only two things can save the USD now: the data picks up and the market will price more hikes by the Fed, or we get a recession soon and the greenback appreciates as a safe haven.

NZDUSD technical analysis

On the 4 hour chart below, we can see that the price recently broke above the trendline and extended the rally to the 0.6250 price level. The moving averages are crossed to the upside, and they are acting as support for the buyers. The upward trendline is defining the bullish momentum, so a break below it will be seen as a change in sentiment and the sellers may start piling in for a fall towards the 0.6084 support again.

On the 1 hour chart below, we can see the levels of interest for the buyers and sellers. If the price pulls back to the trendline and the support zone at 0.6215, the buyers are likely to lean on that area with defined risk just below the last low. Alternatively, the buyers may also pile in in case the price rallies above the 0.6260 high.

The sellers, on the other hand, will want to see a break below the trendline and the last low before jumping onboard and extend the selloff towards the 0.6084 support. Today, we have the US Jobless Claims report and since it’s been a market mover lately, keep an eye on it as a big miss or beat should give the USD a boost.